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New York regulators suspend the license of closed Syracuse mortgage bank

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New York regulators today suspended the license of The Funding Source, a Syracuse mortgage bank that ceased operating three months ago. The Funding Source is owned by former Syracuse city auditor Phil LaTessa and Onondaga County Legislature Chairman Ryan McMahon.
(Tim Knauss | tknauss@syracuse.com)

SYRACUSE, N.Y. - New York banking regulators today temporarily suspended the license of Syracuse mortgage bank The Funding Source LLC, but the order will have little impact because the company ceased operating three months ago.

The Funding Source, which is owned by former city auditor Phil LaTessa and current Onondaga County Legislature Chairman Ryan McMahon, shut its office and disbanded its remaining employees in December.

The company also has been investigated by federal authorities. Company officials said they responded to a subpoena from the U.S. Department of Justice in 2013, and a former employee said he was interviewed by the FBI. The investigation has not resulted in charges against anyone.

Today, the New York Department of Financial Services issued an order to suspend the company's license for a period of up to 30 days, citing four reasons:

-- The Funding Source's $1 million line of credit expired March 15, and the company has not provided evidence of a new credit line.

-- The company's corporate surety bond expired March 7 and has not been replaced.

-- The company vacated its principal office at 906 Spencer St. without notifying state regulators.